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Saturday November 24, 2012
By B.K. SIDHU firstname.lastname@example.org
PETALING JAYA: Malakoff Corp Bhd will return to Bursa Malaysia sometime in the second quarter of next year for its initial public offering (IPO) and is looking to raise about US$1bil (RM3.1bil).
“It is a much bigger and much better (company from the previous Malakoff), and the amount we are raising is within that range (of US$1bil),'' Malakoff chief executive officer Zainal Abidin Jalil said.
He added that “it would be a significant listing but we cannot give you the exact details, however, it would not be as big as IHH Healthcare Bhd or Felda Global Ventures.''
He went on to say that “it is work in progress, on scheduled, and we are in the process of submitting relevant documents for listing to the Securities Commission.''
Power producer Malakoff will be one of the several companies that have plans for an IPO next year after three large listings this year which includes IHH, Felda and Astro Malaysia Bhd.
Other than Malakoff, AirAsia X is slated to list the company's shares on Bursa Malaysia next year and there is talk that Westport Malaysia Sdn Bhd may also be considering an IPO too.
Malakoff was taken private in 2007 for RM9.3bil, or RM10.35 per share by its controlling shareholder MMC Corp Bhd. It achieved profit after tax of RM442mil on revenue of RM1.9bil for the financial year ended Aug 31, 2006.
Based on MMC's FY2011 annual report, its energy business contributed RM5.7bil to the group's total revenue, or 61.3%. In terms of net profit, energy comprised 59.5% or RM596.6mil, a report said.
Malakoff, a 51%-owned subsidiary of MMC, recently announced that it won a RM918mil build-own-operate contract from Oman Power and Water Procurement Co to undertake the development and construction of an independent water project with net desalination capacity of 191,000 cu m per day.
Zainal said the company was eyeing several more projects but he would not discuss details.
A report quoting sources said Maybank Investment Bank and CIMB Investment Bank were lead managers for its planned offering, and Credit Suisse and JP Morgan were the global co-coordinators.
Yesterday, Malakoff's wholly owned unit Malakoff Utilities Sdn Bhd, formerly known as Wirazone Sdn Bhd, was launched.
The re-branding exercise was aimed at repositioning the company to tap opportunities available within KL Sentral and other areas.
It now manages the electricity distribution and district cooling at KL Sentral where it has over 1,600 clients who are individuals and corporations.
However, it has set sights on several projects for similar works at Iskandar Malaysia area in Johor and the Naza complex buildings in the Klang Valley. He could not say what the chances of getting the projects were, but he was hopeful.
To launch the company the Energy Commission chairman Tan Sri Dr Ahmad Tajuddin was present, who said that there were plenty of good opportunities for Malakoff Utilities as the developments within KL Sentral will continue to mushroom thus increasing the demand for energy and chilled water.
However, the challenge for companies such as Malakoff Utilities was to continue to innovate and improve its services to ensure there is uninterrupted and reliable supply.
While on that he added that there were 46 electrical accident cases in the country thus far for this year, of which 25 involved fatalities.
From 2002 to now, there has been 598 accident cases comprising 56% of utility installations, 16% and 11% at domestic and business premises respectively, 10% and 7% at industrial and government premises respectively.
He added that the biggest cause of accidents was poor installation and maintenance of these facilities and he reminded all operators to have in place proper standard operating procedures to minimise the accidents.
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